Alex Bobrov
Following the rapid price drop last Thursday, cocoa future has remained at the point of 2200. The drop has been caused by poor report on cocoa processing in Europe. The volume of the second quarter has proved to be almost 18% smaller than last year. Data on cocoa processing in North America is to be published on Thursday, July 19. Many analysts suppose that these data will provide more exact information on the change of demand for cocoa, as European data may have included transfer of processing from Europe to Africa.
Major fundamental factors for the nearest future:
- reconsideration of ICCO forecast for 2012 towards deficit reduction,
- lower by 17.8% cocoa processing in Europe during the second quarter of 2012
- cocoa stocks at ICE stock exchange storages remain at the 5-year high.
According to Commodity Trading Department of , cocoa price may keep falling, following its seasonal trend.
Alex Bobrov
